CGA ANNOUNCES ANOTHER MILESTONE ACHIEVEMENT - 10 TONNES OF GOLD POURED AT THE MASBATE GOLD PROJECT

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES/

ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE AND TORONTO STOCK EXCHANGE

PERTH, Western Australia, May 24, 2011 /CNW/ - The Board of CGA Mining Limited ("CGA", the "Company") (TSX: CGA, ASX: CGX) is pleased to announce that on 17 May 2011, the Masbate Gold Project in the Philippines achieved another significant milestone, having poured 10 tonnes of gold.

ABOUT CGA MINING LIMITED

CGA is listed on both the main board of the Toronto Stock Exchange and the Australian Securities Exchange.  It is a member of the S&P/TSX Global Gold Index and the S&P/TSX Global Mining Index.

The Masbate Gold Project is the largest gold project in the Philippines and was successfully developed with first gold poured in May 2009. The project has a total indicated resource base of 4.55M ounces (153.41mt @ 0.92 g/t), total inferred resource base of 3.22M ounces (127.15mt @ 0.79 g/t)and a probable reserve of 3.03M ounces (92.2mt @ 1.0g/t) of gold.  In its first year of operation the project produced in excess of 150 000 ounces and is on track to produce at a rate of over 200,000 ounces per annum.  The 4Mtpa plant was constructed by Leighton Contractors Asia Limited ("Leighton") without one lost time injury. The mining contract for the Masbate Gold Project was awarded to Leighton, the largest mining contractor in the world.

CGA is currently upgrading the process plant to lock in a throughput rate of 6.5Mtpa. An aggressive US$10Mpa exploration program is underway at the Masbate Gold Project focussed on both the conversion of additional resources to reserves and delineating new reserve and resource ounces.

CGA has recently spun out its African assets in Ratel Group Limited (TSX: RTG) and also holds a 23% interest in St Augustine Gold and Copper Limited (TSX: SAU), which is earning a 60% interest in the world class King-king Copper-Gold Porphry Project in the Philippines.

CGA has a disciplined acquisition program focused on acquiring new gold projects with a substantial initial resource with the capacity to grow materially and where the development and operational experience of CGA can be applied to enhance shareholder value.

NATIONAL INSTRUMENT 43-101 AND JORC COMPLIANCE

Mr Geoff.G.Jones, F.Aus.I.M.M.CP Mng, CGA's Consulting Engineer, is acting as the Qualified Person in compliance with NI 43-101 and JORC reporting requirements with respect to this announcement. He has prepared and or supervised the preparation of the scientific or technical information in this announcement and confirms compliance with NI43-101 and JORC requirements.

Further information relating to the Masbate Project is included in the technical report entitled Technical Report on the Mineral Resources of the Masbate Deposit, Masbate Province, Republic of the Philippines for CGA Mining Limited prepared by Mining Associates Pty Ltd and available on SEDAR at www.sedar.com, lodged 8 July 2008.

Andrew James Vigar of Mining Associates Pty Ltd, a qualified person, has verified the resource statement for the Masbate Project as disclosed in this announcement, including sampling, analytical and test data underlying the estimate. Verification of the data included numerous site visits, database validation of historical drill results and review of sampling and assaying protocols.  The qualified person was satisfied with the verification process.

A NI 43-101 compliant report has been lodged on www.sedar.com verifying and supporting the new reserve statement made for the Masbate Project.  Mr Daniel Tuffin, previously of Lower Quartile Solution Pty Ltd, a qualified person, has verified the reserve statement for the Masbate Project as disclosed in this announcement, including sampling, analytical and test data underlying the estimate. Verification of the data included database validation of historical drill results and review of sampling and assaying protocols.  The qualified person was satisfied with the verification process.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the drill results and the potential of such results, and other milestones related to the Masbate Gold Project and other projects, production estimates and CGA's future operating or financial performance, are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from CGA's expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of CGA's mineral projects; the need to obtain additional financing to develop CGA's mineral projects.; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for CGA's mineral projects; and other risks and uncertainties disclosed under the heading "Risk Factors" in CGA's Annual Information Form for the year ended 30 June 2010 filed with the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com.


SOURCE CGA Mining Limited

For further information:

Australian Contact    
President & CEO - Michael Carrick  
US Contact
Independent Chairman - Mark Savage
Tel:  +61 8 9263 4000
Fax:  +61 8 9263 4020
Email:  mcarrick@cgamining.com 
Tel:  +1 505 344 2822
Fax:  +1 505 344 2922
Email: marksavage@comcast.net

 

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